Income Beginner: Introduction to Deposit Accounts

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
High-balance deposit accounts typically charge penalties for early withdrawal.
Choose wisely. There is only one correct answer.
False. Your money is always available.
2.
Deposit accounts can be appropriate for investors with low risk tolerance.
Choose wisely. There is only one correct answer.
True. The high degree of security they provide make deposit accounts an effective alternative for those who can't afford to lose their capital.
3.
The simplest kind of deposit account to set up and maintain is a _______.
Choose wisely. There is only one correct answer.
Passbook account. A passbook account is easy to start, offers immediate access to funds, and requires low minimum balances.
4.
Which of the following is a reason an investor might open a deposit account?
Choose wisely. There is only one correct answer.
All of the above. Investors open deposit accounts for all of these reasons.
5.
Asset management accounts make tax preparation easy.
Choose wisely. There is only one correct answer.
True. Combined statements listing all your financial transactions make it easy to find the information you need to prepare your return.